Feedback Nash equilibria for non-linear differential games in pollution control

B-Tier
Journal: Journal of Economic Dynamics and Control
Year: 2008
Volume: 32
Issue: 4
Pages: 1312-1331

Authors (5)

Kossioris, G. (not in RePEc) Plexousakis, M. (not in RePEc) Xepapadeas, A. (Alma Mater Studiorum - Univers...) de Zeeuw, A. (not in RePEc) Mäler, K.-G.

Score contribution per author:

0.402 = (α=2.01 / 5 authors) × 1.0x B-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

Dynamic problems of pollution and resource management with stock externalities often require a differential games framework of analysis. In addition they are represented realistically by non-linear transition equations. However, feedback Nash equilibrium (FBNE) solutions, which are the desired ones in this case, are difficult to obtain in problems with non-linear-quadratic structure. We develop a method to obtain numerically non-linear FBNE for a class of such problems, with a specific example for shallow lake pollution control. We compare FBNE solutions, by considering the entire equilibrium trajectories, with optimal management and open-loop solutions, and we show that the value of the best FBNE is in general worse than the open-loop and optimal management solutions.

Technical Details

RePEc Handle
repec:eee:dyncon:v:32:y:2008:i:4:p:1312-1331
Journal Field
Macro
Author Count
5
Added to Database
2026-01-25